
Nonetheless, the Standard & Poor's 500 Index and the Dow industrials have both hesitated just under their respective 50-day moving averages, keeping the U.S. markets' near-term backdrop on shaky footing.
The S&P 500's hourly chart details the past three weeks.
With Monday's sharp reversal, the S&P knifed back atop the January peak - the 1,150 mark - before establishing support in this area.
From current levels, initial overhead holds at its 50-day moving average, currently 1,171, and is followed by significant resistance at the March peak of 1,180.
Conversely, initial support holds at 1,150, while the next notable floor spans from 1,122 to 1,130, matching Monday's open.
Meanwhile, the Dow's near-term view is similar.
And the S&P 500's wider view roughly matches that of the Dow industrials.
On the constructive side, consider that Friday's low - unaffected by Thursday's technical glitch - held within a point of its 200-day moving average, preserving the S&P's primary uptrend.
Nonetheless, the index stalled just under its 50-day moving average on Monday, and a break atop this area is needed as a first step toward repairing last week's technical damage.
http://www.marketwatch.com/story/meet-the-sp-500s-new-trading-range-2010-05-11


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